Cleanaway Shares Jump as EQT Reaffirms Takeover Proposal

Shares of Cleanaway Waste Management (ASX:CWY) surged on Monday after private equity firm EQT Infrastructure reaffirmed its takeover proposal following a period of due diligence. The update signals significant progress toward a potential acquisition of the Australian waste management company, boosting investor sentiment.

Takeover Proposal Progress

Cleanaway confirmed that EQT Infrastructure has concluded its agreed-upon exclusivity period. Crucially, EQT reported no adverse findings from its due diligence and reaffirmed its previously indicated offer price, providing a clear positive signal to the market.

Both parties are now reportedly working toward finalizing an implementation deed. However, Cleanaway noted that no binding agreement has yet been signed, leaving a degree of uncertainty until a definitive deal is reached.

Dividend and Financial Performance

Adding to the day's momentum, Monday also marked the record date for Cleanaway's final dividend for fiscal year 2026. The company's strong underlying performance supported the shareholder return.

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Key details of the dividend include:

• A final fully franked dividend of 3.50 cents per share.
• The payment represents a 14.2% increase over the prior corresponding period.
• The dividend is scheduled to be paid on October 8, 2026.

The increased dividend reflects a robust earnings trajectory, with Cleanaway's FY26 underlying EBIT rising 14.2% to approximately A$470 million. This growth was driven by solid performance in its waste services division and the integration of the Contract Resources acquisition.

Market Reaction

In response to the dual catalysts, Cleanaway's stock price jumped 4.1% to A$2.675 in Monday's trading, outperforming the broader ASX 200 index. The rally indicates heightened market confidence that the EQT acquisition is likely to proceed, supported by the company's solid operational results.